For the seventh consecutive month, May, the People’s Bank of China (PBOC) increased its gold reserves, according to official data released on Saturday.

After reaching an all-time peak of $3,500 per ounce in April, spot prices for gold, which are frequently perceived as a refuge from economic and geopolitical uncertainty, remained consistent in May.

At the conclusion of May, China’s gold reserves increased from 73.77 million ounces at the end of April to 73.83 million fine troy ounces.

The PBOC reported that its gold reserves were assessed at $241.99 billion at the end of last month, a decrease from $243.59 billion at the end of April.

The PBOC’s willingness to continue increasing its gold holdings despite the high prices is indicative of Beijing’s aspiration to diversify its foreign currency reserves, as bullion has grown by 27% this year as a result of tariff war concerns. This is in addition to the 27% growth in 2024, according to gold market specialists.

The motivation behind the gold purchases has not been disclosed by officials at the PBOC.

After an 18-month gold purchasing frenzy in 2024, the PBOC took a six-month hiatus before resuming gold purchases in November, following the U.S. presidential election victory of Donald Trump.

This week, consultancy Metals Focus reported that the world’s central banks are on course to acquire 1,000 metric tons of gold in 2025, marking their fourth consecutive year of substantial purchases as they transition their reserves from dollar-denominated assets to bullion.